The effect of cultural environment on entrepreneurial decisions

Abstract

PurposeThis paper empirically examines whether the cultural environment plays a role in entrepreneurial decisions in Europe, the United States, Canada and Australia.Design/methodology/approachTo explore this issue, we use data from the Adult Population Survey of 2010–2015 provided by the Global Entrepreneurship Monitor (GEM). To calculate the cultural factor, we utilize additional information from the GEM National Expert Survey data and estimate a probit model to measure the effect of culture based on an unobserved latent variable of satisfaction, measured through a dichotomous variable identifying entrepreneurs.FindingsResults show a positive and statistically significant relationship between the cultural factor and the individual choice of entrepreneurial activity. Our findings are subjected to a range of robustness checks. We extend this analysis to an examination of cultural values as predictors of entrepreneurship status in collectivist and individualist countries. Our results point to collectivist and individualist roles as being among the mechanisms through which the cultural environment may operate.Originality/valueThis is the first empirical work that clusters a wide range of variables provided by the GEM NES data to obtain a cultural indicator, and then applies this indicator to the GEM APS micro-data. Policy-makers should consider these results in order to promote entrepreneurship through culture in collectivist and Mediterranean countries, but use other channels in individualist and Anglo-Saxon countries.

Explaining differences in entrepreneurial activity between immigrants and natives: moderating roles of economic, sociocultural and institutional factors

“…An entrepreneurial culture may reduce the likelihood of entrepreneurship among immigrants, relative to natives. Because native populations are more familiar with local conditions, this supportive sociocultural environment should be especially effective for stimulating their entrepreneurial efforts (Levie and Autio, 2008;Morales and Velilla, 2021), compared with similar efforts by immigrant counterparts-which likely results in a greater share of native entrepreneurship and diminishes the extent of difference between immigrant and native entrepreneurship. That is, an entrepreneurial culture makes entrepreneurship particularly attractive for natives, relative to immigrants, because natives can obtain greater benefits from supportive local norms, to which they have been exposed for longer.…”

Environmental Factors in Affecting Student Entrepreneurship Decision

“…This image also provides empirical evidence that entrepreneurial decisions cannot be separated from a person's "passion" or love, interest, enthusiasm for entrepreneurship. Attention or "intentions" and entrepreneurial tendencies or "tendencies" can also be linked to environmental factors so that they influence entrepreneurial decisions (Al-Qadasi et al, 2023;Alvarez et al, 2011;Morales & Velilla, 2021;Peng et al, 2021;Xing et al, 2022). Oluwadare & Oni (2016), this internal environment is very important for building a better business and is even the main determinant of the success of an organization.…”